Guest Post: Written and contributed by Brad Taylor, Principal Insurance Agent at Comparion
Auto insurance is not only a legal requirement to operate a vehicle in Arizona, but it is essential to protect you and your vehicle in the event of an accident or theft. But shopping for auto insurance can be overwhelming and, in many cases, annoying. Many people end up making mistakes that cost them thousands of dollars in the long run just to save them a couple of dollars a month.
Top 5 mistakes to avoid when buying car insurance
1. Don’t buy the smaller operators who don’t advertise traditionally
One of the most common mistakes people make is sticking with the same 4 or 5 insurance companies they see on TV. As an auto insurance broker, I have access to companies you may not have heard of, but are great to work with. Some of the smaller name operators have great financial strength but choose not to spend their marketing dollars on direct-to-audience advertising. These carriers often offer the best rates and customer service.
2. Choosing the wrong coverage level
Another common mistake people make is choosing the wrong level of coverage. To save money, some drivers opt for the minimum coverage required by law. It should be noted, however, that these levels of liability are rarely sufficient to cover the actual costs of an accident. Most people don’t realize that increasing some of these coverage levels only costs another $1.00 per month, but it can save you from a lien against your home or perhaps a garnishment of your wages .
3. Failure to disclose all relevant information to the auto insurance company
When applying for auto insurance, it is critical to disclose all drivers who live in your home. Even if they don’t drive your vehicles often, if they live in the same household and borrow your vehicle, there may not be coverage in the event of an accident. This can leave you extremely exposed to financial loss for both your vehicle and liability.
4. Not reading the policy details and asking questions before buying
We all hate reading boring legal documents. However, reading your insurance coverages before signing your policy is critical, especially if you’re buying from an agent you don’t know. Often the rep on the other end of the phone will leave a cover like glass that they assumed was included in the price. Before you sign anything, make sure you understand exactly what you are buying.
5. Ignoring potential auto insurance discounts
Many auto insurance companies offer discounts such as discounts for domestic partners, safe driving habits, or past military experience. These discounts add up quickly if you know what to ask for. When requesting a quote, be sure to ask what discounts are available to ensure you don’t miss out on any. A good agent will ask qualifying questions to make sure they are getting the best rate.
Rest easy with an auto insurance agent by your side
Most of us are not fans of changing homes or changing car insurance companies. However, having an agent who can buy on your behalf can make the process much more enjoyable.
Please feel free to contact me and my team with any questions you may have about your coverages. Even if we can’t help you save money on a new policy, we’ll be happy to show you inexpensive ways to improve your coverage and verify that you’re really buying the right insurance.
